Joburg loses prime real estate in illegal transactions

The City of Joburg has admitted that 33 huge tracts of prime real estate, including parks and a nature reserve in the heart of Sandton, valued at R87 million, have been sold fraudulently, without its knowledge.

These have been purchased from under the city's nose by four companies, which have shared directors. Included in these are Norscott Koppies and the Kingfisher Nature Reserve in Sandton.

The value of the reserve is R14m, but it was sold for R5m. And the park's value is R11,6m, but it was sold for R2m to Zambrotti Investments 31 Pty Ltd by a company called Eildoug Investments.

The Mushroom Park Farm in Sandown has also been sold. This property is close on 7 000m178, in the heart of Sandown. It was sold for R1.1m. About 4000m2 of the Ernest Ullman Park was sold for R700 000.

In most cases, transfer took place within a day.

According to a property search, Zambriotti Investments 31 Pty Ltd bought erf 730 in Fourways from a company called Eildoug Investments on February 25 this year for R2m, well below the market value of about R11m.

But Eildoug appears to have bought the property, at the same price, from the municipality the day before.

There are two different title deed numbers for the two transactions, but the property was registered to both companies on the same day.

The same applies to the property that was sold by Eildoug Investments to Zamien Properties on March 15.

Zamien bought erf 721 in Plover Street, Fourways, for R5m. But according to property transfer records, the property was sold to Eildoug by the municipality, for the same price. Property consultants put its value at close to R11m.

A company search revealed that Zambrotti and Zamien share directors, while both companies appear to have links to another property firm called Abalengani.

Abalengani was in the news recently when it emerged that its director, Zunaid Moti, owed Investec more than R1 billion. Part of his company went into provisional liquidation in January. Moti also appears on the list of directors of Zambrotti and Zamien.

Eildoug, which is listed as a financial intermediation company, lists Charlotte Jonck, Ledbury Accounting Services and Wayne Africa as directors.

Salim Bobat, director of Zambrotti and Zamien, confirmed that his companies had bought the property from a third party, Eildoug Investments.

He said the transfer was handled by Peet Viljoen Attorneys in Pretoria.

"If Eildoug bought the property from the municipality, we were oblivious.

"We are aware of some things going on, and that is why we have got our lawyers on to it," he said.

Bobat said he had been presented with an opportunity to buy several properties and had acted upon it. He was not aware whether the prices asked by the third-party seller were below market value.

"My concern is whether Eildoug or the attorneys did something incorrect." Questions needed to be asked about the possibility of the municipality being involved in irregular land deals, he added.

Attempts to reach the directors of Eildoug were unsuccesful.

Claire Walker, a volunteer at Norscott Koppies, said she was shocked to hear that the nature reserve had been sold.

"There are blesbok, duikers, dassies, klipspringers and over 200 bird species that call these reserves home," she said.

Another volunteer, Terence Murphy, said he had done research into the companies and found they were interlinked.

Pat Amerseder of the Fourways Park Development Association said residents had taken over the park about 10 years ago.

"We fenced it, have security patrolling it and have planted about 200 trees. It is our park, we are passionate about it and it is not going to be developed."

The Joburg Property Company (JPC), which handles all sales of land, said it was aware of illegal sales and transfers of council land by people claiming to act as agents of the council.

"All council land may only be sold after the council has resolved in a meeting open to the public that a property can be sold or leased. The award of land further has to be approved in terms of procurement processes of the Municipal Finance Management Act and after approval by the executive adjudication committee of the council," said Helen Botes, managing director of the JPC.

Despite any alleged signature on a sale or transfer agreement by any person purporting to represent the council, the sale and transfer was invalid, she noted. The JPC was obtaining urgent court orders for all the properties it is aware of that have been transferred or illegally transferred.

Botes said all the documentation was fraudulent and the signatures had been found to be forged. She said they had contacted the Pretoria and Joburg deeds offices to stop any further illegal transfers and to put in place the processes to address the theft of land.

She said members of the public should come forward with information by contacting the managing director of the JPC on 011 339 2700.

The Star

Posted at 09:45AM May 07, 2010 by Editor in Cities and Towns  |  Comments[7]